Woodside awarded Subsea 7 three contracts since December 2018, each for engineering studies and includes an option for Woodside to proceed to the execute phase with an engineering, procurement, construction, and installation (EPCI) contract.
The contracts are for
- SNE Field Development–Phase 1, offshore Senegal (SNE)1
- Scarborough Project, offshore Australia (Scarborough)
- Julimar Development, Phase 2, offshore Australia (Julimar)
The awarded work is for engineering activities required to finalize the technical definition of the proposed developments prior to Woodside and its joint venture partners making final investment decisions (FID), which Woodside is targeting for between mid-2019 and early 2020, depending on the project. Subsea 7 has already recognised the value of the engineering studies in its Order Backlog. The value of the EPCI contracts will be recognised after FID, following exercise of the relevant option.
Assuming FID is reached on all three projects, they would in aggregate be equivalent to a major project award for Subsea 7. [Subsea 7 defines a major contract as being over $750 million.]
The SNE and Scarborough projects were awarded to Subsea Integration Alliance, a global partnership between Subsea 7 and OneSubsea, with integrated subsea production systems and SURF project teams.
SNE is a deepwater conventional oil development located offshore, 100 km south of Dakar, Senegal. The proposed development scope includes up to 23 wells with in excess of 90 km of rigid pipelines featuring Subsea 7’s Swagelining pipeline and BuBi pipeline technologies. When producing, it will mark the first crude oil production by Senegal.
The Scarborough field is located approximately 380 km offshore North West Australia. Subject to FID by the Scarborough joint venture, the full integrated project scope of work would include the EPCI of subsea rigid pipelines, flexible risers, umbilicals, and associated infrastructure. Woodside is proposing to develop the Scarborough resource, estimated to contain 7.3 Tcf of dry gas, with 12 subsea, high-rate gas wells tied back to a semisubmersible floating production unit moored in 900 m of water close to the Scarborough field. Gas would be transported by an ~430-km pipeline to the Pluto LNG infrastructure on the Burrup Peninsula. A brownfield expansion of Pluto LNG is planned, adding a second LNG processing train.
The Julimar field is located approximately 200 km offshore North West Australia. The full scope of work will be to design, procure, install, and commission a 22-km, 18-in. corrosion-resistant alloy gas transmission flowline and an umbilical system. The Julimar project was awarded to Subsea 7 as a standalone SURF (subsea umbilicals, risers, and flowlines) contract. The second phase of the project will tie back to the existing Brunello subsea infrastructure connected to the Wheatstone offshore platform and will support the Chevron-operated Wheatstone LNG export project. The onshore facility located west of Onslow includes two LNG trains with a combined capacity of 8.9 million mtpa and a domestic gas plant.
All three projects will be executed using reeled pipelay and heavy construction vessels from Subsea 7’s fleet with offshore campaigns scheduled between 2021 and 2023.
